Sun Corporation received a charter that authorized the issuance of 85,000 shares of $4 par common stock and 19,000 shares of $100 par, 5 percent preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1

Jan.		5		Sold 12,750 shares of the $4 par common stock for $6 per share.
		12		Sold 1,900 shares of the 5 percent preferred stock for $110 per share.
Apr.		5		Sold 17,000 shares of the $4 par common stock for $8 per share.
Dec.		31		During the year, earned $318,400 in cash revenue and paid $238,800 for cash operating expenses.
		31		Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2.
		31		Closed the revenue, expense, and dividend accounts to the retained earnings account.

Year 2

Feb.		15		Paid the cash dividend declared on December 31, Year 1.
Mar.		3		Sold 2,850 shares of the $100 par preferred stock for $120 per share.
May		5		Purchased 550 shares of the common stock as treasury stock at $8 per share.
Dec.		31		During the year, earned $245,400 in cash revenues and paid $178,700 for cash operating expenses.
		31		Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock.
		31		Closed revenue, expense, and dividend accounts to the retained earnings account.

a. Prepare the balance sheets at December 31, Year 1 and Year 2. (Amounts to be deducted should be indicated with minus sign.)

b. What is the number of common shares outstanding at the end of Year 1? At the end of Year 2? How many common shares had been issued at the end of Year 1? At the end of Year 2? (Amounts to be deducted should be indicated with minus sign.)